Source: Honolulu Board of REALTORS.
Single-family homes were in high demand throughout 2021, but sales leveled off in the last quarter of the year as buyers faced low inventory and a slight rise in average mortgage rates since the summer and early fall. In line with the year-over-year double-digit price increases that dominated most of 2021, the annual median price rose 19.3%, ending the year at $990,000. Just one year ago, the annual median sales price for single-family homes was $830,000. In 2021, 60.8% of single-family homes sold over the asking price, compared to 31% in 2020.
The $700,000 to $999,999 price range made up the bulk of single-family home sales at nearly 40%; however, most sales increases were seen at the higher $1 million and up price points. Properties sold in the $1,000,000 to $1,499,999 range were up 84.5%, homes that sold in the $1,500,000 to $1,999,999 range were up 95.6%, and homes sold at $2,000,000 and above more than doubled, up 145.5%. The most significant increase in sales occurred in the Metro region, up 54.6%, and the Diamond Head region, up 35.4%. North Shore was the only region to see a slight decline in sales from the past year – down 3.8%.
“With high demand and dismal inventory of single-family homes, buyers turned their sights to condos, driving competitive activity in some areas and leading to low supply in this market as well. As a result, every price point in the condo market saw more sales in 2021 and every region across Oʻahu marked more sales,” added Takesue.
The $400,000 to $499,999 price range made up 18.4% of condo sales in 2021, and the year ended with an annual median sales price of $475,000, an 9.2% increase from the 2020 median of $435,000. Like the single-family home market, condos in the higher price ranges saw more than double the sales. Condo sales in the $600,000 to $999,999 price range increased by 114.6%, and condos sold at $1 million and above increased by 162.0%.
The Metro region saw condo sales increase by 81.1% year-over-year, while the Ewa Plain and Pearl City regions also saw substantial increases, with sales up 33.4% and 30.7%, respectively. The increase in demand caused supply to drop to astonishingly low levels, driving competitive activity in some areas. In 2021, Oahu condo market saw 36.8% of properties sold over the original asking price, but numerous regions saw over 50% of sales close over asking. Makakilo saw the most considerable bump, with 75%, followed by Ewa Plain with 71.8% of the region's sales.